When two parties sign a contract in Georgia, they obligate themselves to follow through with the terms and conditions. With real estate transactions, the parties sign a contract that binds the buyer and seller to specific prices and terms. If someone does not live up to their end, they breach the contract. One party may feel the other intends to breach, raising concerns about an anticipatory breach.
With an anticipatory breach, one party may realize the other party will not meet the requirements stipulated in the contract. Therefore, the party that will suffer from the breach might not wish to follow through on their terms, and they could seek to cease following through on their duties stated in the contract.
For example, a buyer and seller might sign a purchase contract that states the seller must perform specific repairs before the closing. If the buyer discovers the seller only performed half the repairs and does not intend to finish the work, the buyer may claim there is an anticipatory breach. So, the buyer might choose not to go forward. The situation could lead to civil litigation where the aggrieved counterparty may need to prove their claims about a civil breach.
Damages and civil claims
An anticipatory breach might cause one party to suffer a loss. For example, someone could invest time and money in planning to purchase real estate only to end the deal due to the other party’s actions. Those who suffer financial losses might seek to recover their damages in court.
The parties may work out their differences and avoid an actual breach. Agreements to extend a closing date could give all the parties a chance to work things out. Such steps may salvage a deal threatened by a potential anticipatory breach.